On Monday 15 February 2016 the European Commission will launch their new platform for Online Dispute Resolution (ODR). Rather than resolve disputes, the new platform has been designed to channel disputes to the appropriate alternative dispute resolution (ADR) scheme in a relevant country.
What's about to change?
From 15 February 2016 all businesses trading online will have to provide information to consumers about online dispute resolution under the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015 (the "Regulations"). All UK businesses that sell goods or services to consumers online will be required to display a link to the ODR platform on their website in a place that is easy for customers to find and to provide an e-mail address on their website that can be used for customer complaints.
Businesses that are under an existing obligation to use ADR as part of their trade association will also have to provide a link to the ODR scheme in direct marketing e-mails that offer goods or services and include details about the ODR platform in the terms and conditions issued to customers.
What does this mean for businesses?
Under the Regulations the consumer will be able to lodge a complaint "at the click of a mouse" on the ODR platform and have their online dispute settled by a "referee" (ADR body) in any language. The requirement to provide this link is compulsory so all businesses (with the exception of those businesses classified as "health professionals" under European law) that provide goods or services online to consumers will have to provide the link, no matter what the size of the business. Once the complaint has been lodged on the ODR platform it is then up to the business to respond as to whether or not they will deal with the dispute. Where the business agrees to deal with a dispute transmitted to it by the ODR platform there are various information requirements for the business to provide to the consumer. These include information relating to the procedural rules and costs of the ADR procedure selected.
Failure to adhere to any of the terms of the Regulations, including failure to provide a link to the ODR platform on your website from 15 February, can result in enforcement action being taken by Trading Standards and a potential court order forcing you to comply.
This new online dispute resolution procedure will provide consumers and businesses with a procedure to resolve disputes without the need for costly court procedures and the hope for the Regulations is that both consumers and businesses find them mutually beneficial.
MacRoberts assists businesses to comply with consumer legislation and assists businesses with ADR. For further information, please contact a member of the IPTC team.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
